- US stocks rose on Friday after reports that lawmakers were inching closer to a deal to raise the country’s debt ceiling.
- Negotiators appeared set to work on finalizing a deal before the June 1 deadline.
- Inflationary pressures were reflected in the core PCE index for April.
US stocks rose on Friday as investors headed into the long holiday weekend on reports that Democrats and Republicans in Washington were moving closer to striking a deal that would prevent the government from defaulting on its debt.
The S&P 500 and Nasdaq Composite were on track to post second straight gains, and the Dow Jones Industrial Average was notching its first gain after falling in the past five sessions.
Multiple reports said lawmakers were close to an agreement that would extend the country’s $31 trillion debt limit by two years. The move is needed in order for the Treasury Department to continue paying the nation’s bills with cash balances depleted by June 1.
The New York Times reported that a deal could cap discretionary spending for two years, while returning $10 billion of the $80 billion Congress approved in 2022 for the IRS. The report said Republicans are pushing for spending cuts, while Democrats may use transferred IRS budget funds to avoid further cuts to programs such as education.
Here are the US indexes as they stood at the opening bell at 9:30 a.m. on Friday:
Equities held for profit after the Federal Reserve’s favorite inflation gauge, the core PCE index, rose 4.7% year over year in April, beating expectations for 4.6%.
“The rise in prices has restarted the hike in June, perhaps raising more than a quarter percentage point in the Fed’s last-ditch effort to douse the inflation fire once and for all,” said Peter Anseley, head of portfolio management. Commonwealth Financial Network wrote in a note.
Nvidia shares may remain in focus after the chipmaker’s blockbuster first-quarter earnings and second-quarter guidance soared 24% on Thursday. Nvidia was approaching a market cap of $1 trillion, fueled by the company’s offerings in the growing generative artificial intelligence market.
Here’s what else is happening today:
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